Issued by: Scotland Office, Ministry of Housing, Communities and Local Government, Department for Transport, and HM Treasury

Scottish Secretary writes to local authorities following the Budget.

Following last week’s Budget , Scottish Secretary Ian Murray has written to all local authorities in Scotland to confirm their funding allocations for local growth projects.

Mr Murray confirmed the UK Government will be investing nearly £1.4 billion in dozens of important local growth projects across Scotland over the next 10 years, ensuring that economic growth is seen the length and breadth of the country.

Mr Murray said:

"Growth is a key mission for this government and a top priority for the Scotland Office. The Chancellor delivered a Budget that will herald an era of growth for Scotland, rebuild our public services and begin a decade of national renewal.

"This is a historic Budget for Scotland which chooses investment over decline, and delivers on the promise that there would be no return to austerity. I am pleased that we are now able to confirm our commitment to invest nearly £1.4 billion into important local projects across Scotland over the next 10 years.

"Over the summer I wrote to every local authority to set out our commitment to building strong and trusted relationships so that together we can deliver the change our country needs. I am pleased to be able to write to them again to confirm their funding allocations. I look forward to working with Scotland’s local authorities in the coming weeks and months on a renewed approach for delivering the UK Government’s missions in all parts of Scotland."

Also last week the Chancellor confirmed the Scottish Government will receive Barnett Consequentials of £1.5 billion for 2024/25 and a further £3.4 billion for 2025/26. This will mean a record £47.7 billion settlement in 2025/26 - the largest in real terms in the history of devolution.

The Scottish Government will also receive additional funding when the UK Government allocates the funding set aside for Employer National Insurance Contributions support to UK Government departments. Scottish local authorities have also been given further information on the future of structural funding, currently provided by the UK Shared Prosperity Fund (UKSPF). The Budget confirmed that £900 million is being made available across the UK to extend UKSPF into 2025/26. The UK Government will contact local authorities soon to confirm allocations.

A full list of projects confirmed by the Budget can be seen here: (https://shorturl.at/TERy2)

*Any Levelling Up Fund projects not listed in the table have already been confirmed or are in delivery, and remain unaffected by the Budget, with full UKG commitment.

*The overview does not include confirmed and in delivery Community Ownership Fund projects in Scotland, which are progressed by community groups rather than local authorities. These also remain unaffected by the Budget, with full UKG commitment.

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